BUSINESS LIVE: Inchscape sells UK retail unit; PageGroup’s profits are falling; Kingfisher chair goes away

Hong Kong’s securities regulator has approved the first spot bitcoin and ethereum exchange traded funds (ETFs).

The Hong Kong Securities and Futures Commission (SFC) has given regulatory approval to the Hong Kong units of both China Asset Management and Bosera Asset Management to launch the ETFs, the companies said on Monday.

Inchcape plans to sell its UK retail operations to US car dealership giant Group 1 Automotive in an all-cash deal worth around £346 million.

The group said the sale would help it focus on becoming a distribution-oriented company in areas such as logistics, product planning and after-sales.

Victoria Scholar, head of investments at Interactive Investor, says:

“There has been a negative reaction from the oil market to Iran’s retaliatory attack on Iran last weekend, partly because much of the geopolitical risk was already priced in last week after oil hit a six-month high. Furthermore, risk-off sentiment gripped markets overnight, with a sea of ​​red across Asia-Pacific markets. And the Israeli government said damage was limited.

“With the price already up around 18% by 2024, there are growing concerns that Brent crude could exceed $100 per barrel. Money managers have recently increased their long positions on U.S. crude futures and options in anticipation of a potential threat to supply. There are concerns about disruptions particularly through the Strait of Hormuz, where about 20% of the world’s oil flows through the waterway.

‘One of the biggest risks to the UK economy from a $100 oil price is that it could drive inflation back up. The Bank of England and the government have been desperately trying to ease price pressures since the end of the pandemic, saying they were largely responsible for the cost of living crisis. Higher oil prices have the potential to push prices back up in various parts of the economy, not just in terms of gasoline pump prices, but also in other sectors such as transportation, manufacturing and food production.”

Andrew Cosslett, chairman of European home improvement chain Kingfisher, will step down in June after seven years in the role and will be succeeded by non-executive director Claudia Arney.

The changes will take place at the end of the company’s annual general meeting on June 20, said the FTSE-100-listed owner of B&Q and Screwfix in Britain and Castorama and Brico Depot in France.

Arney has been an independent non-executive director of Kingfisher since 2018 and is currently chairman of Deliveroo and non-executive director of Derwent London.

London-listed shares are starting the week on a lower note as escalating tensions in the Middle East make market participants cautious, while dismal corporate earnings also weigh on results.

Precious metals miners lead the sector losses, down 2.9 percent, while heavyweight oil and gas stocks fell 1.6 percent and lower crude oil prices follow as market participants have rolled back risk premia amid news of escalating tensions in the Middle East and the fear of a broader regional crisis. conflict.

On the data front, US retail sales figures for March are due on Monday, while UK consumer prices and retail sales figures are due later this week.

PageGroup has lost 6.4 percent after the recruiter reported a nearly 13 percent decline in the group’s gross profit in the first quarter.

Marks and Spencer chairman Archie Norman has become the latest boss to sound the alarm over Labour’s plans to reform workers’ rights.

The policy, led by the party’s deputy leader, Angela Rayner, would see staff given rights to new jobs from day one and a crackdown on zero-hours contracts.

PageGroup’s profits fell nearly 13 percent in the first three months of the year due to slow hiring in the markets, and job flows worsened toward the end of the quarter.

Global recruiters have flagged continued challenges in the labor market due to low confidence among workers and employers, accompanied by a slowdown in the technology sector and a slower recovery in China.

“Translating final interviews into accepted offers remains the biggest challenge as sentiment among candidates and clients remains subdued due to the general macroeconomic uncertainty in most of our markets,” said CEO Nicholas Kirk.

London-listed car dealer Inchscape has agreed to sell its UK retail business to Group 1 Automotive UK in an all-cash deal worth £346 million, following a strategic review launched in January.

CEO of the Inchscape Group, Duncan Tait:

“As we continue to realize our strategic ambition to become the leading global distribution partner to our OEM partners worldwide, this transaction represents an important step on that journey.

‘Our UK retail operations are of high quality, with an experienced and high-performing management team, and have been an important part of the Group’s growth.

‘With our active international expansion into higher value distribution activities, the strategic importance of the UK retail business has become limited. The board has therefore concluded that this is the right time for a new owner to continue this company.

“This transaction aligns with our strategic priorities, simplifies our business operations and represents an attractive opportunity to deliver meaningful returns for our shareholders. We believe this will enhance the Group’s overall value proposition and enable us to drive long-term growth and value creation for all stakeholders as we further develop our differentiated distribution platform.”

Auto Trader has revealed which used cars are currently leaving second-hand dealerships the fastest – and which are collecting dust on forecourts.

The data suggests Brits are turning to cost-effective used hybrids, with the top 10 dominated by the green fuel type.

Nationwide’s £2.9bn bid to take over Virgin Money has won in-principle backing from the most influential mutual lobby group.

Peter Hunt, founder of Mutuo, Britain’s leading advocate for building societies and co-operatives, said a successful deal would be a turning point.